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GETTING CREATIVE WITH PRICING.

Publication: Workforce Management
Publication Date: 26-MAR-07 		Format: Online
Delivery: Immediate Online Access
Full Article Title: GETTING CREATIVE WITH PRICING.(Lockheed Martin Corp.'s human resource outsourcing contracts with Affiliated Computer Services Inc.)

Article Excerpt
Byline: Jessica Marquez

As early HRO contracts come up for renewal, price is a key issue, but so are the elements that determine what that price will be. Clients and providers are discussing new pricing approaches and are attaching rewards as well as penalties to service level agreements.

In 2000, for example, aerospace giant Lockheed Martin signed an HRO contract with PricewaterhouseCoopers' Unifi division (now Affiliated Computer Services). Under that deal, ACS would have to pay penalties if service levels tailed off from expected targets, says Warren Pfister, director of HR customer service at Lockheed.

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